In terms of the possibility of obtaining a residence permit, Germany is considered to be one of the most "difficult" countries. Especially when it comes to citizens from countries outside the European Union. But, despite this, the German government encourages investment in the country's economy, including from foreigners - and the acquisition of real estate is an investment in the economy. Accordingly, it is this path that can be optimal when obtaining a residence permit in Germany, but only the very fact of buying real estate does not give this right.
Residence permit options
Since there is no immigration program in Germany that implies obtaining a residence permit for the purchase of real estate or in exchange for investments in government securities, as can be seen in Spain or Greece, but foreigners have other options for obtaining a permanent residence permit. The Federal Law on the Residence of Foreigners (Aufenthaltsgesetz) covers various life situations, among which the key ones are: education, marriage, reunification with parents for minors, employment and entrepreneurship. As an exception, confirmation of the status of a wealthy person may become the basis.
The last point is especially interesting. Firstly, because few people know about it, and secondly, because it is the easiest way to obtain a residence permit in Germany for wealthy people. It does not require investment in the economy or starting a business. If a foreigner receives a residence permit as an entrepreneur, then almost everything depends on what is and how his business project is presented. And the amount of investment can be very modest and is determined by the business plan. At the same time, when obtaining a residence permit as a financially independent person, investments are not needed: of course, it is necessary to prove that the applicant has capital (from 1 million euros for a family, real estate, business, etc.), but it is not required to invest it anywhere.
In both cases, the residence permit is initially issued for one year, then twice extended for two years directly in Germany. The advantage of immigration through business is the ability to quickly obtain permanent residence (permanent residence permit, which does not require renewal), if the business plan is successfully implemented. But in both cases, such a right will appear only after five years after successfully passing the language exam. Therefore, if a residence permit is only an intermediate stage for a foreigner on the way to obtaining citizenship, then it is better to start learning German now. But at the same time, after five years of stay in Germany, even without knowledge of the German language, there is an opportunity to extend the residence permit for another five years, and for people over 65 years old - indefinitely. After seven years of residence in the country, the right to apply for citizenship appears.
Strategy for obtaining a residence permit through the purchase of real estate
The first and main argument for obtaining a residence permit in Germany is the desire to move the center of vital interests to the country in the future. It should be noted that in the law there is no such basis for issuing a residence permit as "real estate ownership", but its acquisition provides small advantages. For example, a permit may be obtained on the basis of “desire to spend time in real estate during the vacation period”. It is not so important - own or rented. In addition, the law does not provide for a minimum amount of real estate purchases (the threshold of 250,000 euros was abolished in 2015, as well as the creation of at least five jobs in the company).
Indirectly, the purchase contributes to confirmation: both the availability of property and motivation to live in Germany. But this does not mean that for the sake of obtaining a residence permit one has to buy real estate. Some realtors are pushing clients to this, promising " buy a villa - get a residence permit." No one can guarantee this, the application is considered individually, and even if there is real estate worth several million euros, the applicant may be refused. Therefore, most experts advise: if the main goal is legalization in Germany, first it is better to get a residence permit, and only then buy real estate.
How can a property owner become an entrepreneur?
The hotel owner, who is actively involved in the conduct of business, may, under certain conditions, apply for a residence permit or even permanent residence. Owners of any commercial or residential real estate have the same chances. To do this, the foreigner must be a valid entrepreneur, for example, the executive director of an LLC (GmbH), and not just its shareholder. It must always be remembered that the salary (profit) must be of such a size that it could cover the living wage of a foreigner and his family members, pay for health insurance for everyone, make regular savings in life insurance or pension insurance, pay living expenses (rent and utility costs or only a communal apartment if the property is owned). Financial receipts in the territories of other countries are not income. That is, only earnings from a specific entrepreneurial activity are taken into account.
Summing up the possibilities of obtaining a residence permit in Germany regarding the purchase of real estate in this country, we emphasize that the ownership of residential or commercial real estate automatically does not give any additional rights to the buyer. For owners of commercial real estate or several residential properties that generate a regular income, it looks a little different if they become entrepreneurs and register their company. The previously mentioned federal law "On the stay of foreigners" names the following conditions under which a non-resident entrepreneur can obtain a residence permit in Germany:
- presence of economic interest or need on the part of the region
- entrepreneurial activity has a positive impact on the German economy
- securing financing from equity or borrowed capital
The presence of the prerequisites for the first point is assessed based primarily on how viable the entrepreneur's idea is, whether he has experience as an entrepreneur, what is the size of investment capital, what impact it has on the employment and education situation, and what contribution is made to innovation and research. Responsible departmental institutions, the department for registration of entrepreneurs, administrative and legal trade unions and bodies for issuing permits for professional activities located at the place of registration of the enterprise are involved in checking the fulfillment of these conditions.
Thank you for your help in preparing the material:
Hermann Moyzhes, Consultant at AVERS Group Germany GmbH
Lyudmila Belykh, realtor and financial consultant at Bavaria Property
Daria Biryukova, manager of DEM GROUP GmbH
Julia Fuchs, Director of Fuchs Real Estate GmbH